Aug 25 (Reuters) - Futures tracking Canada's financials-heavy stock index edged higher on Tuesday, as investors weighed positive quarterly bank earnings and trade tensions with the U.S.
Futures on the S&P/TSX index rose 0.2% to 2,154.10 points at 6:30 a.m. ET.
BMO Financial (BMO.TO), reported a rise in third-quarter profit on Tuesday, driven by strong performance in its capital markets business.
Bank of Nova Scotia (BNS.TO), also posted a rise in third-quarter profit, helped by higher interest income.
The results add to a broader rally in bank stocks, which have outperformed the benchmark index, TSX, this year. The financial sector hit its highest level in eight years earlier this month.
Focus is also on U.S.-Canada trade tensions after President Donald Trump on Monday threatened to raise U.S. tariffs on all cars, trucks and automotive parts from Canada to 50% starting January 1, 2027 — escalating a trade fight after negotiations collapsed last week.
The deal on the table would have cut the top-line tariff rate on Canadian cars and light-duty trucks to 15% from 25% and the tariffs on aluminum and steel to 25% from 50%.
Among commodities, oil prices hit a one-week low as investors shrugged off the latest U.S. sanctions threat against Iran. Brent crude futures shed 3%, while West Texas Intermediate crude slipped 2.9%.
Gold prices also slipped, with profit-taking and a firmer dollar curbing gains ahead of U.S. inflation data and remarks from Federal Reserve Chairman Kevin Warsh this week.
Spot gold was down 0.4%, while silver shed 1.5%.
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Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Sahal Muhammed
